Investor Presentation June 2020 Disclaimer This presentation and - - PowerPoint PPT Presentation

Investor Presentation

June 2020

Disclaimer

This presentation and the information contained therein (herein referred to as the “Document”) have been prepared by Banque Internationale à Luxembourg S.A. (herein referred to as “BIL”), a Luxembourg bank licensed and supervised by the CSSF (the Luxembourg Commission de Surveillance du Secteur Financier) and the ECB (European Central Bank). It has been produced for information purposes

• nly and may not be complete. This Document cannot be construed as investment advice as it has been prepared without regard to the

individual financial and other circumstances of persons who receive it. This Document does not constitute an offer to sell or the solicitation to buy any securities issued by BIL or any entity of the BIL group and does not constitute a public offer under any applicable legislation. In particular, this Document is not an offer to sell or the solicitation of an

• ffer to purchase securities in the United States. Securities may not be sold in the United States absent registration or an exemption from

registration under the U.S. Securities Act of 1933, as amended. This Document may include future expectation and/or forward-looking statements and assumptions related to the possible evolutions of business environment. By their very nature, statements contained in this Document involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause our actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such statements. Such important factors may include, but are not limited to, general economic conditions, general competitive factors, changes in the availability

• r costs of liquidity, general market conditions, changes in laws and regulations (including accounting principles), changes in the policies of

regulatory authorities, changes in interest rates and/or exchange rates, and other factors not specified herein. In any event, such forward- looking statements speak only as of the date on which they are made, and BIL does not undertake any obligation to update or revise such statements as a result of new information, future events or otherwise. BIL makes every effort to ensure the contents of this Document have been compiled from sources believed reliable. All opinions, estimates and projections contained in this Document are those of BIL as of the date hereof and are subject to change without notice. BIL or any

• ther entity of BIL’s Group is not liable for any damages that may result from any inaccuracy or incompleteness in/of this information. BIL
• r any other affiliate of BIL is not liable for any investment decisions of whatever nature, which are in any way based on this Document by

the user thereof. This Document or any part of it may not be reproduced, distributed or published without the prior written consent of BIL.

2

Agenda

3

Overview Financial Performance Asset Quality

1 2 3

Solvency and Liquidity

4

Key takeaways

5

Appendix

6

4 16 19 23 27 29

Note: Any reference to 2019 figures presented in this document shall be understood as 2019 full year figures, unless otherwise specified

Overview

Overview

5

Key milestones of the Oldest Bank in Luxembourg

1963 BIL was underwriter of the first eurobond listed on the Luxembourg Stock Exchange 1856 Banque Internationale à Luxembourg , the first public limited bank in the country, undertook its first issues of banknotes 1970 BIL is one of the founding members of CEDEL, which grew to become the clearing firm Clearstream International 1985 The Bank commenced its private banking activities in Switzerland 2015 Merger of the private banking business of KBL (Switzerland) into BIL Switzerland 2012 Precision Capital and The Grand Duchy of Luxembourg bought BIL from Dexia 2018 Legend Holdings acquires Precision Capital’s stake in BIL 2019 & 2020 Developments of BIL activities in Hong Kong and China 2000 The Bank commenced its private banking activities in Denmark

Overview

6

Building great companies

• On July 2, 2018, Legend Holdings Corp. closed the

transaction for the acquisition of Precision Capital’s 89.936% stake in BIL1

• The Grand Duchy of Luxembourg remains an

important shareholder in BIL with its 9.99% stake

• Legend Holdings considers BIL as a long-term

strategic investment

• Legend Holdings intends to maintain and invest

further in the development of the BIL brand, in Luxembourg, Europe and internationally

• BIL governance and management has remained

unchanged (see Appendix)

• Legend Holdings is an investment holding group

headquartered in Beijing, China, and listed on the Hong Kong Stock Exchange since June 2015

• As at 31 December 2019, Legend Holdings had

assets of EUR 79.85 billion2, annual revenues of EUR 50.42 billion3 and close to 87,000 employees worldwide

• Legend Holdings founded Lenovo and developed it

into a global leader following Lenovo’s acquisition of IBM’s global PC business in 2004

• Legend Holdings has over a 35-year history of

continued growth and expansion

• Legend Holdings is rated AAA in China (United

Credit Ratings Company Limited) BIL acquisition Legend Holdings Shareholding as at December 2019⁴

89.980% 9.998% 0.022% Legend Holdings The Grand Duchy of Luxembourg Public

(1): Please refer to BIL press release dated July 2, 2018 : “Legend Holdings receives regulatory approval for the acquisition of Banque Internationale à Luxembourg” (2): Based on EUR/CNY of 0.12795 as at December 31, 2019; (3): Based on 2019 average EUR/CNY of 0.12954 (4): after capital increase on December 16, 2019 of EUR 58 million

Overview

7

Legend Holdings’ Investment Portfolio with Sustainable Long-Term Growth

Legend Holdings

IT

• High-tech incubation & start-ups

e.g. artificial intelligence, machine learning, big data, gene technology

Investissements stratégiques urs Investissements financiers

Financial Services Innovative Consumption and Services Agriculture and food Angel investments Venture capital

• Early stage and innovation e.g.

smart electric drive and driver assistance systems, internet, big data, fintech Private equity

• Growth capital and cross-border

investments in various sectors Strategic investments Financial investments ✓ Significant or controlling shareholder ✓ Long-term shareholder ✓ Provide value-added services ✓ Build leading companies in target industries

Note: Major but not all portfolio companies are listed as of December 31, 2019

Kaola Technology

Overview

8

Building great companies

Rationale for Legend’s strategic investment in BIL Legend offers advantages as a shareholder

➢

Profitable business: BIL’s asset scale, profit and revenue growth potential and business stability

➢

BIL’s long history and deep roots in Luxembourg

➢

A well-run bank with a diversified business mix and a focused, long- term strategy

➢

A well-capitalised bank with strong corporate governance and risk management

➢

Long-term investment horizon and capital support

➢

Access to China: business

• pportunities for BIL with Chinese

companies and individuals

• verseas

➢

Potential business synergies with

• ther companies in Legend’s

portfolio

➢

Experience and network in artificial intelligence, internet, big data and financial technology, etc. Synergies started in November 2018, BIL launched a private equity fund called BIL PE I, whose objective is to provide shareholders with long-term capital appreciation via diversified investments in three private equity funds managed by Legend Capital and each mainly targeting China. BIL Suisse won a Wealth Briefing Swiss Award 2020 for “Best Client Initiative” with judges impressed by the BIL PE I private equity fund.

9

CREATE TOGETHER 2025

3 PILLARS UNDERLYING THE PLAN BIL’S AMBITIONS

Return on Tangible Equity Core cost-Income Ratio Core operating profit on average The three pillars will drive BIL’s long term profitability

Overview

BIL’s ambitions – Strategy

• BIL’s Board of Directors approved its next five-year strategic plan “Create Together 2025”in July

2019 in the continuity of the BIL 2020 plan.

• This plan not only maps the overall strategic aims for BIL group but also defines the key priorities

for the different business lines for the period from 2020 to 2025. Both Legend Holdings and the Grand Duchy of Luxembourg are committed to providing financial support for the implementation

• f the plan. This commitment could for example take the form of retained earnings within the

company (instead of paying dividend) as well as potential capital support if required over the horizon of the plan due to balance sheet growth or increases in BIL’s capital needs, including as a result of regulatory RWA inflation (so-called Basel IV). The approved plan considers a 12% CET1 ratio target.

• In Luxembourg, which will continue to be BIL’s core market, the Bank intends to defend its strong

market share thanks to organic and semi-organic growth in all business areas. More specifically, BIL aims to enhance its reputation as an entrepreneur-friendly bank as well as an asset manager and trusted advisor.

• Internationally, BIL intends to leverage the network and expertise of Legend Holdings to launch

dedicated Wealth Management and CIB services. Concerning Wealth Management services more broadly, the Bank’s expertise will be focused on key countries and key customer segments and a more selective approach will be applied to those with a lower growth potential.

• All above mentioned initiatives will be supported by a new, reliable, modern core banking system.

By streamlining internal processes, efficiency gains will be delivered over the next five years, improving the cost-income ratio of the Bank.

Overview

10

Global presence

• Retail, Private,

Corporate and Institutional Banking

• BIL Fund and Corporate

services (BFCS)

• BIL Manage Invest (BMI)
• Belair House, multi-

family office

• BIL Lease, financial

leasing solutions

• Private Banking

activities

• #1 destination for

international wealth management with an increasing exposure to high-growth geographies

• Niche private bank with
• ffices in Zurich,

Geneva, Lugano

• Focus on private banking

for (U)HNWI clients

• Long-term relationships

with wealthy local investors

• International financial

services on an open architecture basis

• Booking centers in

Switzerland and Luxembourg

• Private Banking center

specializing in Scandinavian wealth management and asset management services

• Offering bespoke

investment solutions on an open architecture basis

Luxembourg Switzerland Dubai Denmark

• Rep. Office in Beijing

conducting market research and promoting the BIL brand in the Chinese market

• BIL Wealth Management
• Ltd. in Hong Kong

specialising in securities dealing, advisory and discretionary services

China

Overview

11

A leading bank in the Luxembourg economy

Financial participations in major national companies Stock Exchange 21.41% National airline 13.14% Key information ➢ Number 1 independent bank in Luxembourg ➢ Systemic importance in Luxembourg ➢ Reputation for operational excellence among professionals ➢ Entrepreneurship mindset ➢ 14.5% local market share in lending2 ➢ 13.5% local market share in deposits2 Leading independent bank in Luxembourg

Retail SME1 & Corporate Private Public Institutional

3 2 3 3 3

13% 87% 21% 79%

Other shareholders BIL shares

(1): SME – Small and Medium Enterprises (2): Information based on BCL volumes as of December 2019

Overview

12

Commercial Activities & Operations and IT

Retail, Private Banking Luxembourg & Digital Banking Private Banking & Wealth Management Corporate & Institutional Banking Operations and IT

▪BIL is the universal banking partner for corporate clients in Luxembourg, covering the whole lifecycle ▪With tailor-made and flexible financing solutions provided by value added services ▪Competitive time-to-market enabled by a rapid decision making process ▪New Institutional Banking

• rganisation based on a streamlined

value proposition, covering our customers’ full value chain. ▪Renewed support to the Innovation market, with the extension of the InnovFin Portfolio ▪BIL is a wealth management player for international clients with cross- border needs, positioning itself as an actor able to offer customised cross- border solutions ▪BIL integrates both financial and non- financial solutions such as assets structuring, life insurances, wealth and estate planning as well as capital protection ▪Strong position of BIL as trusted advisor with value added services (incl. advisory framework) ▪Reinforced coordination between units and entities to deliver one BIL Client Experience ▪Developed position among IFAs

• Digital program delivered fully

digital mobile on-boarding, enhanced mobile application,

• perational CRM improvements,

etc.

• Ongoing Core Banking System

project

• Ongoing efforts and realisation of

efficiency gains

• Automated mortgage loans through

robotics ▪BIL is a premium actor for retail & affluent clients, offering a high-quality service to clients based on their needs ▪BIL differentiates itself through a strong combination of human and digital with value added human interactions ▪BIL provides tailor-made daily banking, investment and lending services to private banking clients ▪BIL is able to provide clients with a wide range of specialist services ▪Ability to capitalise on omni-channel network including a wide physical presence ▪First bank in Luxembourg to launch a more innovative secure BILnet app ▪First bank to offer full online customer

• nboarding entirely from smartphone

and tablet

Overview

13

2019 Key figures

43.5

EUR billion

+10.3% compared with Dec 2018

ASSETS UNDER MANAGEMENT

#3

in Luxembourg (marketshare)

41

Services points in Luxembourg

142

Automated teller machines

84

Next-generation machines allowing

real-time deposits

113

NET PROFIT BIL GROUP

(EUR million after tax)

28.1

+10.3% compared with 2018

TOTAL BALANCE SHEET BIL GROUP

EUR billion

14.7

+9.9% compared with Dec 2018

LOANS

EUR billion

12.47%

CET1 2019 after partial profit allocation

COMMON EQUITY TIER 1

19.0

+10% compared with Dec 2018

DEPOSITS

EUR billion

Core operating net income before tax EUR 136 million +20% compared with 2018

Overview

14

2019 Commercial activities

Private Banking Corporate Banking Retail Banking

91%

• f core operating

revenues come from Luxembourg Assets under Management Deposits Loans1 Core operating revenues

33% 33% 34%

EUR 535 mn

24% 27% 49%

EUR 43.5 bn

41% 41% 18%

EUR 15.3 bn

33% 35% 32%

EUR 19.0 bn

(1): To match with 2019 Balance Sheet figures (cf. slides 13 and 18), please note that this figure is limited to the commercial business lines excluding impairments on loans.

Overview

15

Steady growth

Assets under Management¹ (in EUR bn) Deposits¹ (in EUR bn) Loans¹ ² (in EUR bn) +51% +51% +52%

Private Banking Corporate Banking Retail Banking

EUR 4 billion

• f organic growth increase EUR 1.4 billion

and a positive market effect EUR 2.6 billion

EUR 1.7 billion

• f deposits increase

EUR 1.4 billion

• f loans increase

(1) : Based on the new organisation, 2018 and 2019 figures have been updated following the transfer of Private Banking Luxembourg from Private Banking to Retail Banking and Wealth Management Professional Intermediaries from Private Banking to Corporate Banking. (no change in 2013-2017 figures) (2): To match with 2018 Balance Sheet figures (cf. slides 13 and 18), please note that this figure is limited to the commercial business lines excluding impairments on loans.

4.8 4.9 5.2 5.7 5.9 6.2 9.7 10.6 5.5 6.1 7 6.8 7.2 8.2 10.5 11.5 18.5 19.8 23.3 25.2 26.3 25.1 19.3 21.4

28.8 30.8 35.5 37.7 39.4 39.5 39.5 43.5

3.1 3.2 3.5 4.1 4.3 4.7 5.8 6.3 3.4 3.5 3.7 3.7 4 4.8 5.8 6.6 6 6.7 7.8 8.4 8 7.8 5.7 6

12.5 13.4 15 16.2 16.3 17.3 17.3 19

4.1 4.3 4.5 5 5.3 5.6 5.7 6.3 4.2 4.4 4.5 4.7 5 5.5 5.6 6.3 1.8 2.1 2.3 2.5 2.8 2.7 2.5 2.7

10.1 10.8 11.3 12.2 13.1 13.8 13.8 15.3

Financial Performance

Financial Performance

17

2019 Income Statement

Totals may differ slightly due to rounding

Core operating revenues Private Banking clients Retail clients Corporate clients Financial Markets Group center Core operating expenses Core operating value adjustments Core operating net income before tax 521 551 30 6% 188 184 (4) (2%) 165 176 11 7% 163 175 12 7% 18 30 12 67% (14) (14)

• (389)

(389)

• (19)

(25) (7) (36%) 114 136 23 20% Revenues Interests and dividend income Fee income Other income Operating costs Gross operating income Value adjustments Net income before Tax Tax Net income after Tax 573 568 312 318 197 209 64 40 (398) (397) 175 170 (19) (27) 156 143 (26) (30) 131 113 Income Statement – Global view (in EUR mn) Income Statement – Focus on core operating net income before tax (in EUR mn) Income Statement 2018 2019 ➢ BIL group reported a net income after tax of EUR 113 million, compared to EUR 131 million in 2018 (-14%). This was mainly due to large non-recurring capital gains in 2018 from the Bank’s Investment Portfolio and from the revaluation of the “Les Terres Rouges” building complex which was divested in 2019 following the sale of Red Sky S.A. ➢ BIL group’s core operating net income before tax reached EUR 136 million, 20% higher than 2018 thanks to good results of the commercial business lines (good performance by both Retail and Corporate stemming from a solid commercial franchise evolution offset by Private Banking) and financial markets, cost containment measures and a limited impact in terms of cost of risk. Income Statement 2018 2019 Change Cost-income ratio 69.5% 70.0% Core cost-income ratio 74.6% 70.7%

Financial Performance

18

2019 Balance Sheet

Assets (in EUR bn) Liabilities (in EUR bn) ➢ Loans and advances to customers increased by EUR 1.3 billion (+9.9%). Commercial activities’ loans (excluding impairment) increased by EUR 1.4 billion (+10.3%) driven by mortgage and investment loans respectively by EUR 0.6 billion and EUR 0.7 billion. ➢ Financial investments increased by EUR 1.1 billion (+15.8%) as a result of BIL’s excess cash. ➢ Customer deposits increased by EUR 1.7 billion (+10%) stemming from the growth in new clients and net new assets in both Retail & Corporate banking. ➢ Debt securities reached EUR 3.2 billion following the senior non-preferred bond issue in Luxembourg for EUR 300 million in 2018 and EUR 252 million in 2019. ➢ Shareholders’ equity increased by EUR 0.3 billion (+24.7%) driven by the new AT1 transaction EUR 175 million, the capital increase EUR 58 million and the 2019 net profit EUR 113 million.

Totals may differ slightly due to rounding

1.2 1.1 6.5 7.6 13.4 14.7 1.8 2.3 2.5 2.4 25.5 28.1 2018 2019 Cash and Balances with Central Banks Loans and Advances to Credit Institutions Loans and Advances to Customers Financial Investments Other assets 1.4 1.7 0.8 0.9 0.3 0.2 2.8 3.2 17.3 19.0 2.9 3.1 25.5 28.1 2018 2019 Amounts due to Credit Institutions Amounts due to Customers Debt Securities and Financial Liabilities Subordinated Debts Other liabilities Shareholders’ Equity

Asset quality

Asset quality

20

2019 Global Exposure

Exposure by Geographic Region (MCRE1) Exposure by type of counterparty (MCRE1) Portugal Ireland Italy Greece Spain 328 649 Sovereign exposure towards Portugal, Ireland, Italy, Greece, Spain (MCRE, in EUR mn)

28.7% 21.1% 34.8% 15.2% 0.2% Central Governments Corporate & PSE Individuals, SME & Self-emp. Financial Institutions Others (inc. Securitisation)

(2): PSE – Public Sector Entities (3): SME – Small and Medium Enterprises (1): Maximum Credit Risk Exposure (MCRE):

• The net carrying value of balance sheet assets other than derivative products (i.e. the carrying value after deduction of specific

provisions);• The mark-to-market valuation of derivative products;• The total off-balance sheet commitments corresponding to unused lines of liquidity or to the maximum amount that BIL is committed to as a result of guarantees issued to third parties.

EUR 31.9 bn

Loan-to-value ratios

EUR 31.9 bn

59.3%

Average loan-to-value ratio for SME loans

66.1%

Average loan-to-value ratio for Mortgage Loans 978

2 3

51.7% 9.9% 6.3% 4.5% 9.0% 18.6% Luxembourg France Belgium Germany Switzerland Others

Asset quality

21

Non-Performing Loans and Cost of Risk

Non-performing loans (exposure, in EUR mn) Non-performing loans (ratios) Cost of risk ➢ The total Non-Performing exposure decreased by EUR 16 million while the total exposure increased by EUR 2.45 billion. ➢ Decrease of the NPL ratio excluding non-core compared to previous year ➢ Asset quality ratio1 is 2.12% ➢ Coverage ratio2 is 67.19%

(1): Asset quality ratio is calculated using credit impaired loans as a percentage of total loans (2): Coverage ratio is measuring specific provisions recognised for loans and receivables in relation to total outstanding impaired loans and advances to customers

314 345 352 331 292 318 254 279 344 352 312 270 568 624 696 683 604 588 2014 2015 2016 2017 2018 2019 Not Impaired Loans Impaired Loans with specific provisions

• 27
• 19
• 17
• 20
• 18
• 25

2014 2015 2016 2017 2018 2019 Provisions on impairment Loans and for Credit commitments (in EUR million) 24.6 16.4 14.1 15.1 13.6 17.3 2014 2015 2016 2017 2018 2019 Provision / Gross amount excluding impaired loans with specific provisions ratio (in bps)

3.94% 3.99% 4.22% 4.00% 3.32% 2.85%

2.35% 2.44% 2.78% 2.86% 2.44% 2.08% 2014 2015 2016 2017 2018 2019 NPL ratio NPL ratio excluding Non-Core

Asset quality

22

2019 Investment Portfolio

Investment Portfolio by Issuer Type European Government Bonds Portfolio by Geographic Region Investment Portfolio by Rating Investment Portfolio by Maturity

47% EUR 6.69 bn

A+

Average rating

5 years

Average maturity

47% 19% 12% 7% 5% 5% 5% European Govies Financials / Corp. / Securitisation Covered bonds Agencies / Supras US Govies Local Authorities Other govies 33% 19% 19% 11% 10% 7% 1% Belgium Spain France Central Europe Ireland Austria / Germany Other 16% 46% 29% 10% AAA AA A BBB 30% 22% 24% 23% 2% [0;3yrs] ]3;5yrs] ]5;7yrs] ]7;10yrs] >10yrs

Solvency and Liquidity

Solvency and Liquidity

24

2019 Solvency Position

1,726 (661) 1,065 175 1,240 139 1,379

Total Shareholders' Equity Deductions and Prudential Filters Common Equity Tier 1 AT1 Tier 1 Capital Tier 2 Total Capital

Capital Breakdown Solvency Ratios (figures after profit allocation¹, in EUR million) Common Equity Tier 1 (CET1) EUR 98 million increase is mainly due to the capital increase of EUR 58 million and partial 2019 profit allocation of EUR 40.9 million.

2018 2019

Credit risk & CVA² Market risk Operational risk 7,136 7,542 62 49 837 952 Weighted risks 8,034 8,543 Common Equity Tier 1 Additional Tier 1 Tier 2 967 1,065 150 175 138 139 Total capital 1,255 1,379 CET1 ratio Tier 1 ratio Capital adequacy ratio 12.04% 12.47% 13.91% 14.52% 15.62% 16.15% Solvency ratios

4.08%

Leverage ratio Risk Weighted Assets (RWA) Risk Weighted Assets growth (EUR 509 million) mainly driven by the Credit Risk (EUR 409 million) and operational risk (EUR 115 million). Credit risk growth is related to the credit risk models and commercial loans’ portfolio. Operational risk follows a more granular segmentation of BIL’s activities.

12.47%

CET1 ratio

9.325%

SREP requirements³

(1): Partial 2019 profit allocation (EUR 40.9 million) (2): CVA - Credit Value Adjustment (3): CET1 requirement 4.5%, conservation buffer 2.5%, O-SII buffer 0.5%, countercyclical buffer 0.075%, P2R 1.75%

Solvency and Liquidity

25

Liquidity and Funding

Evolution of the Liquidity Coverage Ratio Liquidity BIL debt maturity profile1 (in EUR mn)

77.5%

Loans-deposits ratio

EUR 2.4 billion

Excess cash at Central Banks

82%

• f the bond portfolio

is ECB-eligible

111%

Net Stable Funding Ratio

139%

Liquidity Coverage Ratio BIL’s diversified sources of funding

• Standard:

➢ Deposits: Retail, Private Banking, Institutional , Corporate ➢ Schuldscheine

• EMTN Programme:

➢ Senior debt to Third Party Investors ➢ Subordinated debt (Tier II and AT1) ➢ BSPs (BIL Structured Products): Debt issuances distributed in BIL’s

• wn network (Retail, Private Banking, Corporate)

➢ Senior Non-Preferred debt

(1): Excluding Corporate deposits & Schuldscheine (3): BSPs – BIL Structured Products (2): EUR 31 million Contingent Convertible, EUR 175 million AT1, subordinated debts EUR 50 million Tier 2 and USD 100 million Tier 2 maturing 2028

3 2

115% 136% 119% 140% 131% 134% 139% 2013 2014 2015 2016 2017 2018 2019 Liquidity coverage ratio

1 628 1 495 1 403 845 597 345 345 345 345 345 881 813 728 517 352 552 552 552 552 552

3 406 3 206 3 028 2 260 1 846 1 245 826 468 277 234 500 1 000 1 500 2 000 2 500 3 000 3 500

• Dec. 2019 June 2020 Dec. 2020

2021 2022 2023 2024 2026 2028 2030

Senior debt held by Third Party Investors Subordinated debt BSPs Senior Non-Preferred debt

Solvency and Liquidity

26

BIL’s Credit Ratings

Standalone Rating (SACP) ALAC Support Publication date (rating action) bbb+ +1 notch 22 Nov 2019

A-/Stable/A-2

Standalone Rating (BCA) Government uplift Loss Given Failure (LGF) Publication date (periodic review) baa2 +1 notch +2 notches 18 Nov 2019

A2/Stable/P-1

Key takeaways

Key takeaways

28

➢ Systemic bank in the Grand Duchy of Luxembourg rated AAA by S&P, Moody’s and Fitch ➢ Leading independent bank in Luxembourg with an excellent brand ➢ Long-term commitment from both shareholders ➢ Strong capital and liquidity positions ➢ Solid profitability with a 10.6% return on equity1 in 2019

(1): Return On Equity calculated based on 2019 net profit before tax and average of 2019 and 2018 shareholders’ equity excluding net profit of the year and other equity instruments (Additional Tier One)

Appendix

Governance

30

Board of Directors

Luc Frieden Chairman Maurice Lam Director Peng Li (¹) Vice-Chairman Christian Schaack Director Jing Li (¹) Director Marcel Leyers Director/CEO Chris van Aeken Director Pierrot Rasqué (²) Director Vincent Thurmes (²) Director

Staff Representatives

Michel Scharff Director Staff Representative Serge Schimoff Director Staff Representative Marc Terzer Director Staff Representative Ashley Glover Director Staff Representative

(1): Legend Holdings’ administrators (2): Grand Duchy of Luxembourg administrators

Glossary

31

List of acronyms and specific terms

ALAC Additional Loss-Absorbing Capacity BCA Baseline Credit Assessment BMI BIL Manage Invest BSP BIL Structured Products CET1 Common Equity Tier 1 CEDEL Centre de Livraison des Valeurs Mobilières CBS Core Banking System CRM Customer Relationship Management CSSF Commission de Surveillance du Secteur Financier CVA Credit Value Adjustment ECB European Central Bank EIF European Investment Fund HNWI High Net Worth Individuals LGF Loss Given Failure MCRE Maximum Credit Risk Exposure Acronym Definition NPL Non-Performing Loans O-SII Other Systemically Important Institution PSE Public Sector Entities P2R Pillar II Requirement Buffer RM Relationship Manager RPA Robotic Process Automation RWA Risk Weighted Assets SACP Standalone Credit Profile SME Small and Medium Enterprises SREP Supervisory Review and Evaluation Process VR Viability Rating Acronym Definition

Banque Internationale à Luxembourg SA

69, route d’Esch L-2953 Luxembourg RCS Luxembourg B-6307 Tel.: (+352) 4590-1 Fax: (+352) 4590-2010 www.bil.com DISCLAIMER – The information contained in this document is provided purely for information purposes. BIL may not be held responsible for the use of this information and of its direct or indirect consequences

Olivier Habay Head of Long Term Funding T: (+352) 45 90 24 85

• livier.habay@bil.com

Nico Picard Chief Financial Officer T: (+352) 45 90 36 17 nico.picard@bil.com Jérôme Nèble Head of Products & Markets T: (+352) 45 90 49 97 jerome.neble@bil.com Didier Le Gloan Head of Financial Communication T: (+352) 45 90 55 34 didier.legloan@bil.com